Here is why LUNA is up by more than 13% today
The broader cryptocurrency market has been experiencing a mixed performance since the start of the day.
The cryptocurrency market continues to suffer from the recent bearish trend, with the total market cap now around $1.7 trillion.
Bitcoin and the other leading cryptocurrencies have been underperforming since the start of the week. BTC lost its major support level at $40k and now trades $37,600 per coin.
Despite the bearish trend, LUNA, the native token of the Terra ecosystem, is up by more than 13% over the past 24 hours. At the moment, LUNA is the best performer amongst the top 10 cryptocurrencies by market cap.
The major catalyst behind this movement is the announcement that the Luna Foundation Guard (LFG) has closed a $1 billion private token sale to establish a decentralised UST Forex Reserve denominated in BTC.
The Luna Foundation Guard is a Singaporean non-profit organisation dedicated to promoting the growth of the Terra ecosystem.
The team said the $1 billion private token sales by LFG is one of the cryptocurrency industry’s largest sales to date. The private token sale event was led by Jump Crypto & Three Arrows Capital, with participation from DeFiance Capital, Republic Capital, GSR, Tribe Capital and several others.
Key levels to watch
The LUNA/USD 4-hour chart is the most bullish amongst the top 10 cryptocurrencies by market cap. The technical indicators show that LUNA is performing excellently at press time and is currently trading at $60 per coin.
The MACD line is deep within the positive territory, indicating a strong bullish momentum for LUNA. the 14-day RSI of 61 shows that LUNA could soon enter the overbought region if the rally continues.
LUNA could break past the $66 resistance level over the next few hours if the market rally is sustained. In the event of an extended rally, LUNA will trade above $75 for the first time since January.